Despite lukewarm fuel demand in the United States, the country’s crude oil imports rose to a nearly two-year high in May as refiners sought to process heavier crudes from Canada and Latin America to meet summer driving season needs.
According to data from ship tracking service Kpler, U.S. crude oil imports increased to 3.1 million barrels per day (bpd) in May, the highest level since July 2022. Imports have remained strong so far this month, averaging around 2.9 million bpd.
This surge in imports comes as fuel demand in the U.S. has remained tepid. Data from the U.S. Energy Information Administration (EIA) shows that product supplied for gasoline was 9.1 million bpd in the week ending June 14, slightly below the 10-year seasonal average. Distillate fuel oil product supplied was also around 3.7 million bpd, about 3% below the seasonal average.
The increase in crude oil imports was driven by higher supplies from Canada, Mexico, Guyana, and Colombia. Crude oil imports from Canada climbed to 319,000 bpd in May, the highest in 2-1/2 years, as the newly expanded Trans Mountain pipeline boosted flows to the U.S. West Coast. Imports from Guyana hit a record 99,000 bpd, while those from Colombia reached a near two-year high.
“U.S. refiners bought excess crude oil to mitigate the loss of Mexican crude,” said Rohit Rathod, a market analyst at energy researcher Vortexa. This was due to Pemex, Mexico’s state oil company, briefly paring exports in April, leading U.S. refiners to seek heavier crudes from other sources. However, weaker-than-expected demand by Pemex’s domestic refineries canceled planned May cuts, and imports from Mexico this month have run at 624,000 bpd, the highest this year.
The top May importers were Chevron, Marathon Petroleum, Valero Energy, and Phillips 66, according to Kpler data.